ATM machines are commonly found in shopping malls with retail stores that process numerous credit card transactions, or at financial institutions where customers use the equipment to withdraw money from their accounts. Having a built-in ATM machine inside your business location creates convenience for customers who need cash to pay for products and services.
However, purchasing an ATM machine isn’t limited to businesses and banks. For individuals seeking passive income opportunities, owning an ATM machine presents a viable option worth considering. Naturally, one of the first questions potential ATM operators ask is: how much do ATM machines cost?
This question doesn’t have a straightforward answer since it depends on the type of ATM bank machine you purchase, and there are numerous options available. You can buy new machines, used ATM cash machines, or freestanding ATM units, each offering dozens of technology levels to choose from. This article provides an overview of basic ATM machine costs based on your purchasing decisions.
Purchasing a New ATM Machine
Most people prefer to buy a new ATM machine for several reasons, with EMV chip card compliance being the primary concern. Many older or used ATM machines lack EMV chip card compliance, which is crucial since EMV chip cards represent the newest generation of credit and debit cards that have replaced magnetic strip technology.
Chip cards offer significantly enhanced security for users and have reduced fraud rates by over 50%. Major card companies now require ATM machine companies to produce EMV-compliant ATMs, making owners of non-compliant machines liable for fraud occurring on their devices. Purchasing a non-EMV-compliant ATM means you’ll either pay for expensive EMV upgrades or accept the risk and financial responsibility for fraud.
Another compelling reason to purchase a new automated teller machine is their superior appearance and advanced technology. With better screens that can offer more services, most customers gravitate toward newer ATMs, making them the preferred choice for owners. Additionally, new machines are less prone to costly mechanical issues that require expensive repairs.
New machine costs vary significantly, with estimates ranging from $1,000 to $25,000 depending on the machine type. However, a standard traditional freestanding ATM typically costs around $3,000. You can find comprehensive details about ATM types and pricing ranges in our ATM machine cost guide.
Purchasing a Used ATM Machine
According to CostOwl, purchasing a used ATM can cost as little as $500. While most machines likely cost somewhat more, they remain clearly cheaper than new machines. However, these savings come with important tradeoffs.
First, you must ensure any used ATM you purchase is in proper working condition. Buying a used ATM that only functions for four months doesn’t provide real savings. Unfortunately, thoroughly inspecting a used ATM before purchase can be challenging, and resolving issues after purchase may prove difficult. If you’re considering a used ATM, we strongly recommend purchasing only from large, reputable ATM vendors with established histories of selling quality used equipment.
Ensuring EMV compliance in any used ATM purchase is also crucial. As previously mentioned, buying a non-EMV compliant machine requires either expensive upgrades or accepting significantly higher fraud liability as the owner. ATM Depot maintains a list of discontinued, non-EMV compliant ATMs to avoid when purchasing machines (broken machines are listed at the bottom of the page).
Used ATM machine prices typically range between $1,200 to $1,800. If you prefer countertop ATM machines instead of freestanding cash machines, budget around $1,500 to $2,500.
Upgrading Used ATMs
What if you find an excellent deal on used ATMs that aren’t EMV compliant? Can they be upgraded for compliance? Yes, upgrading ATMs to EMV compliance is possible. However, the estimated cost of $2,000 to $4,000 per machine eliminates the savings from buying used equipment. This upgrade cost exceeds the average price of a new ATM, making the purchase of non-EMV compliant machines financially impractical.
Renting or Leasing an ATM Machine
Before purchasing your own ATM, consider exploring rental or leasing options. If you’re an existing business owner seeking to provide ATM access for customers without focusing on significant machine profits, renting might be the easier solution. While less profitable, it eliminates upfront purchase costs and removes maintenance responsibilities from your plate.
Leasing also serves as an option for those lacking funds to purchase a machine outright. Most ATM sellers offer leasing arrangements, though they typically include transaction fees.
ATM Maintenance Costs
While the purchase price represents the main cost for ATM owners, researching other ownership expenses is essential. ATMs require regular servicing to reload cash and receipt paper, plus repairs for any mechanical issues that arise.
Although you can perform this maintenance yourself to save costs, many owners prefer outsourcing to specialist companies. This approach offers superior logistics but adds expenses to your machine operation and reduces overall profit.
Key Factors to Consider Before Buying an ATM
Now that we’ve outlined ATM machine sample costs, let’s examine the factors you should consider before purchasing an ATM machine.
- Do you want to install a dedicated phone line for the ATM machine, use your existing internet connection to run a wire to the ATM, or use a wireless ATM? ATM businesses can utilize wireless technology if they have a reliable WiFi internet connection.
- What ATM processing network do you plan to use?
- How much money do you plan to spend? Are you getting a built-in cash machine, a freestanding ATM machine, or a countertop ATM machine?
- What ATM company are you buying from?
- Do you prefer a fixed or cash removable cassette? If you plan to get an additional cash cassette, it costs between $100 and $500.
- How much you’ll charge as a transaction fee. The national average surcharge is $2.66.
- The ATM cash machine’s location. Check the distance between the nearest ATM machine to yours, and how it will affect your business.
- Whether you need a thermal receipt printer
- Do you have enough floor space to place the ATM machine?
Is It Worth the Investment?
Before purchasing an ATM, calculate the potential profit from ownership. The average ATM fee is $4.61 per transaction. If you can position your ATM in a high-traffic location generating approximately four transactions daily, you could achieve revenue of roughly $6,700 annually.
With a purchase price of $3,000, that represents over a 200% gross return! Additionally, if you’re placing an ATM in your existing business, such as gas stations or convenience stores, you’ll also boost sales from customers using the ATM cash in your establishment.
However, you must also factor in machine maintenance costs. Depending on your situation, these may include ATM location rental fees, credit card processing charges, leasing costs or ATM installation expenses, and ongoing servicing fees.
Additionally, you must maintain ‘vault cash’—cash on hand to refill your ATM as needed. While this cash isn’t technically an ‘expense,’ it represents a substantial amount of money that must be available and cannot be used for other business purposes. If you’re considering using a cash loading service, factor in those costs as well. Optional cash loading services typically run between $35 to $60 per month on average.
ATM expenses vary too widely to estimate ownership profit for everyone. However, if you want to calculate your potential profit, you can use this online profit calculator from National Cash Systems. Remember—any potential profit estimates are just that: estimates, not guarantees.
Getting Started
Regardless of the specific ATM type you want to purchase, you have numerous options available. Below are several ATM sellers and servicers you can contact for more information.
- Mobile Money claims to be the “#1 ATM Provider in the US”, and they can also provide all installation and servicing for ATMs bought from them.
- America’s ATM services small and medium-sized businesses.
- ATM Depot provides ATM solutions to entrepreneurs and businesses wanting to own an ATM.
- ATM Atom specializes in parts, repairs, and training for ATMs.
Bibliography
- “Purchase an ATM Machine.” MobileMoney.net, MobileMoney.net, https://www.mobilemoney.net/purchase-buy-atm-machine.
- Sliker, Bob. “How to Upgrade Your ATMs to EMV and Stay in Business.” 10 June 2015, http://www.atmatom.com/how-to-upgrade-your-atms-to-emv-and-stay-in-business/.
- Ann, Rissa. “ATM Machine Buying Guide.” Business.com, Business.com, 14 Jan. 2019, www.business.com/articles/atm-buying-guide/?_ga=2.164631999.1658209850.1580513045-3649661.1578862039.
- “How Much Does an ATM Machine Cost?” Cost Owl, Cost Owl, 2020, www.costowl.com/b2b/atm-machine-cost.html?fbclid=IwAR0C1NTgwc-tNI39Qi1pkgXMwHlvCLINDPm07NwqHdyK60rDSkIy4sDzn24.
- Barrington, Richard. “Bank Fees Survey 2019.” Money-Rates.com, Money-Rates.com, 27 Aug. 2019, www.money-rates.com/research-center/bank-fees/.
